Core sector growth at 7.8% in Nov, slowest in six months

Coal and refinery products recorded 10.9% and 12.4% growth, but cement and crude shrank

- Dhirendra Kumar

The output of eight core infrastructure sectors expanded 7.8% in November, official data showed on Friday. That is the slowest pace of growth recorded since May, when the eight sectors cumulatively grew 5.2%.

Amid mixed trends from different sectors, the growth recorded last month was higher than the 5.7% recorded in November last year, but it was still a big moderation from the 12% expansion seen in October.

“Though core industries’ growth in November 2023 was the slowest after May this year, it may be too early to say whether this slowdown could affect the overall health of the economy going forward," said economist Biswajit Dhar, who is a professor at Centre for Economic Studies and Planning at Delhi’s Jawaharlal Nehru University.

At the same time, Dhar added that it must be recognized that since the global economy is experiencing a perceptible slowdown this quarter, the Indian economy is also facing some headwinds as a result.